Kerala High Court
All Kerala Retail Ration Dealers ... vs State Of Kerala Represented By Its ... on 13 August, 2025
Author: N.Nagaresh
Bench: N.Nagaresh
2025:KER:60820
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 13TH DAY OF AUGUST 2025 / 22ND SRAVANA, 1947
WP(C) NO. 23732 OF 2025
PETITIONERS:
1 ALL KERALA RETAIL RATION DEALERS ASSOCIATION,
STATE COMMITTEE
REGISTER NO.540/89, EZHUTHACHAN NAGAR, THRISSUR,
REPRESENTED BY ITS GENERAL SECRETARY, T.MUHAMMADALI,
S/O. IMBICHIMOYI, , NOUFAL NIVAS, PARAYATHODU,
CHEROOPPA, MAVOOR, KOZHIKODE, PIN - 673661
2 P.P.JOSEPH
AGED 42 YEARS
S/O.P.C PAUL, PUTHUSSERY, KONGORPILLY,
ERNAKULAM, FAIR PRICE SHOP OWNER LICENSE
NO.EKM/069/2022/NPR., PIN - 683517
BY ADVS.
SRI.SUNIL JACOB JOSE
SHRI.MOHAMMED AZEEM M.
RESPONDENTS:
1 STATE OF KERALA REPRESENTED BY ITS PRINCIPAL SECRETARY
DEPARTMENT OF FOOD, CIVIL SUPPLIES & CONSUMER AFFAIRS,
GOVERNMENT SECRETARIAT, TRIVANDRUM, PIN - 695001
2 COMMISSIONER OF CIVIL SUPPLIES & CONSUMER AFFAIRS
COMMISSIONERATE OF CIVIL SUPPLIES & CONSUMER AFFAIRS,
PUBLIC OFFICE BUILDING, LMS VELLAYAMBALAM RD, PALAYAM,
THIRUVANANTHAPURAM, KERALA, PIN - 695033
3 CONTROLLER OF RATIONING
O/O. COMMISSIONERATE OF CIVIL SUPPLIES & CONSUMER
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W.P.(C) Nos.23732 & 23819 of 2025
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AFFAIRS, PUBLIC OFFICE BUILDING, LMS
VELLAYAMBALAM RD, PALAYAM, THIRUVANANTHAPURAM,
KERALA, PIN - 695033
BY ADVS.
SRI. JAFFAR KHAN, SR. GOVERNMENT PLEADER
SHRI.K.P.JAYACHANDRAN, ADDL. ADVOCATE GENERAL
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 01.08.2025, ALONG WITH WP(C).23819/2025, THE
COURT ON 13.08.2025 DELIVERED THE FOLLOWING:
2025:KER:60820
W.P.(C) Nos.23732 & 23819 of 2025
:3:
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
WEDNESDAY, THE 13TH DAY OF AUGUST 2025 / 22ND SRAVANA, 1947
WP(C) NO. 23819 OF 2025
PETITIONERS:
SHABEER N.U
AGED 44 YEARS
S/O N.M UMMER, NEERUNGAL HOUSE, RAJAGIRI.P.O,
SOUTH KALAMASSERY, ERNAKULAM, PIN - 683104
BY ADVS.
SHRI.KELWIN SIMON
SHRI.ABDUL SAHAD M.H.
SHRI.NEERAJ M.S.
SMT.DEVIKA S.
RESPONDENTS:
1 STATE OF KERALA
REPRESENTED BY THE SECRETARY TO THE GOVERNMENT,
CIVIL SUPPLIES & CONSUMER AFFAIRS DEPARTMENT,
GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM, PIN - 695001
2 THE COMMISISONER OF CIVIL SUPPLIES
VIKAS BHAVAN, OPPOSITE MUSEUM, PUBLIC OFFICE,
THIRUVANANTHAPURAM, PIN - 695033
3 CONTROLLER OF RATIONING
VIKAS BHAVAN, OPPOSITE MUSEUM, PUBLIC OFFICE,
THIRUVANANTHAPURAM, PIN - 695033
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W.P.(C) Nos.23732 & 23819 of 2025
:4:
BY SRI. JAFFAR KHAN, SR. GOVERNMENT PLEADER
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 01.08.2025, ALONG WITH WP(C).23732/2025, THE
COURT ON 13.08.2025 DELIVERED THE FOLLOWING:
2025:KER:60820
W.P.(C) Nos.23732 & 23819 of 2025
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CR
N. NAGARESH, J.
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W.P.(C) Nos.23732 and 23819 of 2025
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Dated this the 13th day of August, 2025
JUDGMENT
~~~~~~~~~
The All Kerala Retail Ration Dealers
Association is the 1st petitioner and a member of the said
Association is the 2nd petitioner in W.P.(C) No.23732/2025.
W.P.(C) No.23819/2025 is a Fair Price Shop (FPS) owner. The
writ petitions have been filed seeking to direct the respondents
to forthwith order door delivery of ration kerosene to the Fair
Price Shops of the members of the 1st petitioner-Association.
The petitioners also seek to direct the respondents to consider
entrusting the Public Sector Oil Companies with the task of door
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delivery of ration kerosene to the Fair Price Shops.
2. The parties and exhibits are referred to in this
judgment as they are described/marked in W.P.(C)
No.23732/2024.
3. The petitioners challenge Ext.P2 GO dated
17.06.2025. By Ext.P2 GO, the 1st respondent-State of Kerala
has ordered transportation charge of ₹500/- per kilo litre of
kerosene for the first 40 Kilometres and ₹5/- per Kilo litre in
excess of each Kilometre beyond the first 40 Kilometres for the
wholesale dealers. The retail dealer commission was increased
to ₹6/- per Kilo litre with effect from 01.06.2025.
4. The petitioners state that till a few years ago,
kerosene was distributed through retail ration shops at
prescribed quantities as per availability based on the allotment
made by the Central Government. The quota and allotment of
kerosene was reduced from time to time. The distribution of
kerosene was done through authorised Kerosene Wholesale
Dealers (KWD). The retail ration dealers were to lift the
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authorised quota from the KWD and to sell it in their respective
retail shops.
5. Kerala State earlier had 240 KWDs spread
across 78 Taluks in the State. The number of KWDs was scale
down and now they are only 30 KWDs across the State. The
retail dealers are forced to travel more than 60 to 70 Kilometres
for lifting the kerosene. In Ernakulam District, there is only one
KWD at North Paravur. Retail dealers from far away places like
Kothamangalam have to reach North Paravur to lift the kerosene
quota.
6. Apart from distance factor, the Fair Price
Shops (FPS) faced problems from Police and Motor Vehicles
Departments. It is not permissible to transport ration kerosene
from the wholesale depots to FPSs in pick up van or
autorickshaws. If kerosene is transported in pick up vans or
autorickshaws, heavy fine will be imposed by the Motor Vehicles
Department. The 1st petitioner brought these difficulties faced by
the FPSs to the notice of the District Supply Officer.
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Discussions were held at various levels.
7. The Government constituted a three member
committee with Rationing Controller as Convenor on 20.07.2023
to study the grievance of retail ration dealers. The Committee
submitted a report dated 15.04.2024 recommending to increase
the retail dealer commission to ₹5/- and also to start door
delivery of ration kerosene to the FPSs to reduce the financial
burden of retail dealers. The Committee recommended that
KWDs, who transport the permit kerosene in tanker lorries, can
be directed to deliver kerosene at the door step of the respective
FPSs. However, no action was taken to implement the
recommendation.
8. The petitioners state that the FPS owners are
still forced to go to far away KWDs and transport the same to
FPSs through pick up vans and autorickshaws inviting penalty
from the Motor Vehicles Department. The retail ration dealers
are not in a position to carry forward the shops to distribute the
ration kerosene with the meager dealer commission. The
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petitioners are unable to perform their statutory duty of
distributing ration kerosene. The petitioners are before this
Court seeking redressal of their grievance.
9. The Senior Government Pleader entered
appearance and resisted the writ petitions on behalf of the
respondents. Owing to the reduction in kerosene quota in the
State, the distribution system was adversely affected for the past
few years in Kerala and the dealers were reluctant to lift the
allotted kerosene stock. In view of the aforesaid circumstances,
the Government, after detailed examination of the matter, issued
GO (Rt) No.193/2025/F&CS dated 17.06.2025 enhancing the
transportation charge payable to the wholesale kerosene
dealers and commission to retail dealers. Pursuant to the
aforesaid order, the commission payable to retail kerosene
dealers has been enhanced from ₹3.70 to ₹6/- per litre. The
revised rate came into force with effect from 01.06.2025.
10. During the first quarter of the financial year
2025-2026, the Central Government sanctioned 5676 KL of
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kerosene towards PDS subsidy and non-subsidy requirements.
Accordingly, the Department of Civil Supplies issued directions
to the authorised kerosene dealers for lifting the allotted
quantity. At present, the ration dealers are lifting and distributing
kerosene in accordance with the directions issued by the
department. Only a few dealers have abstained from lifting the
allotted kerosene. In fact, there is no enabling provision in the
Kerala Kerosene Control Order permitting doorstep delivery of
kerosene to retail ration dealers.
11. Furthermore, as per the National Food Security
Act (NFSA), the facility of doorstep delivery is confined
exclusively to the transportation of food grains. It was the usual
practice for ration dealers to personally collect kerosene directly
from the wholesale distributors. Pursuant to the request made
by the ration dealers and upon due consideration of their
concern, the Government revised and enhanced the
commission payable to them. Approximately 80% increase has
been granted under the commission component to the retail
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dealers. The present claim by certain dealers that they are
unable to lift the kerosene is contrary to the terms and
conditions of the agreement entered into between the
Government and the ration dealers.
12. The leakage allowance permitted to wholesale
kerosene distributors is limited to only 0.2%. The contention in
the petition that 2% allowance was granted is factually incorrect.
Leakage allowance has been provided solely because the
wholesale dealers store kerosene for extended periods and in
large quantities. In contrast, retail dealers are required to lift and
distribute kerosene to consumers immediately, and therefore,
they are not expected to store kerosene for prolonged duration.
Hence, the government is not in a position to consider the
demand for granting leakage allowance to retail dealers.
13. As per Order 13 of the Kerala Kerosene
Control Order, 1968, a retail dealer shall comply with all
directions that may be issued from time to time generally to all
retail dealers or to him in particular by the Commissioner,
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District Collector, Controller, Deputy Controller of Rationing,
District Supply Officer or Taluk Supply Officer in regard to the
purchase, sale, storage or distribution of kerosene. The District
Supply Officers have reported that certain retail dealers are
unwilling to lift kerosene from the authorized wholesale dealers
and to distribute the same to ration cardholders. As per the
provisions of the Kerala Kerosene Control Order, 1968, and the
Kerala Targeted Public Distribution System (Control) Order,
2021, the Commissioner, the Government and District
Collectors, etc., are vested with the authority to initiate action
against ration dealers who fail to comply with the directions of
the Department.
14. In consideration of the representation
submitted by both retail and wholesale dealers, the Government
convened a meeting on 20.06.2025 with the representatives of
the kerosene wholesale dealers and ration dealers for
deliberation of the issues raised therein. In the aforesaid
meeting the representatives of both the wholesales and retail
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dealers has given confirmation to lift and distribute kerosene,
accepting the rates envisaged in GO (Rt) No.193/2025/F&CS
dated 17.06.2025.
15. The recommendation of the three member
committee is under the consideration of the Government. It shall
be finalized after holding discussion with stakeholders. A
meeting has already been scheduled on 08.07.2025 to examine
the issue of lifting and distribution of kerosene in Taluks without
KWDs.
16. I have heard the learned counsel for the
petitioners and the learned Senior Government Pleader
representing the respondents.
17. The respondents constituted a Three Member
Committee with the Rationing Controller as Convenor to study
the grievances of the retail ration dealers, on 20.07.2023. The
Committee, after detailed discussions and studies, submitted a
report dated 14.04.2024 to the Government recommending to
increase the retail dealer commission to `5/- and to start door
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delivery of ration kerosene to the respective FPS, in order to
reduce the financial burden of the retail dealers. The Committee
even suggested that the KWDs, who transport the permit
kerosene in tanker lorries, can be directed to deliver kerosene at
the door step of the respective FPSs.
18. The Government thereafter issued Ext.P2 GO
dated 17.06.2025. By Ext.P2 GO, the retail dealer commission
was increased to ₹6/- per kilolitre with effect from 01.06.2025
onwards. Though the petitioners had requested for adequate
leakage percentage and door delivery of kerosene, those
demands were not met. The representation submitted by the
petitioners remain unaddressed.
19. The prime grievance projected by the
petitioners is with regard to the non-viability and illegality in
taking delivery of the ration kerosene from the KWDs. It is to be
noted that there were about 240 KWDs in Kerala earlier and due
to the changes brought about in the ration sector, the number of
KWDs has been reduced to 30. There are only one or two
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KWDs in a District. A good part of the FPSs have to travel as
far as 60 to 80 Kilometres to collect ration kerosene. The FPSs
get about 300 litres of kerosene under ration quota. The
commission amount at the rate of ₹6/- per litre obtained from the
quota will be about ₹1,800/-. The FPS owners have to bear the
expenses for transportation from this ₹1,800/-. Evidently, such
purchase expending huge transportation charges would indeed
be unviable.
20. There is a further issue in transportation of
kerosene through vehicles. The Motor Vehicles Act and the
rules made thereunder regulate transportation of explosive
materials through motor vehicles. Kerosene is explosive
material. The kerosene therefore should be transported only
through designated vehicles having the security fitments as
mandated by the Motor Vehicles Act and the Rules.
21. Ration kerosene cannot be transported through
ordinary pick up vans or autorickshaws by the FPS owners. The
quantum of ration kerosene being as low as 300 litres, the larger
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tanker lorries will not be affordable for FPS owners. Smaller
vehicles fitted with safety equipment / tanks are not available in
all areas in the State. Calling for such smaller vehicles suitable
to carry kerosene from distant places would further reduce the
profit margin of the FPS owners. If they use ordinary vehicle,
they are likely to be penalised by the Motor Vehicles Department
officials.
22. The purpose of Fair Price Shops and ration
distribution being intended to target the financially backward
sections of the society, the Government has a duty to ensure
that ration materials including kerosene are delivered to the FPS
owners at rates which will make the FPSs viable to function.
23. The Taluk Supply Officers in Kollam District
had a discussion with KWD licensees and ration dealers at the
District Supply office chamber on 21.06.2025. Taking into
consideration the ground reality, the District Collector has
permitted R. Santha, KWD II to effect door delivery of kerosene
to the FPSs, under Rule 7 of the Petroleum Act, 1934. The said
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instance would also point towards the necessity for door delivery
of kerosene to the FPSs.
24. In the circumstances of the case, I am of the
view that the Government shall take a conscious decision in the
matter taking into account the genuine grievances raised by the
petitioners and the necessity to sustain the FPS system in
Kerala.
25. The Government Pleader, relying on the
judgment of this Court in Maradu Market Traders Association
v. State of Kerala [2018 (3) KLT 212], urged that W.P.(C)
No.23732/2025 filed at the instance of Ration Dealers
Association is not maintainable as separate court fee has not
been paid on behalf of each of its members. In this regard, I find
that the other petitioners in these writ petitions have taken up
the same issue paying the court fee individually. Taking into
consideration the nature of the grievance and its impact on the
citizens in the State, especially the economically weaker
sections, I am not inclined to accept the argument of the
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Government Pleader.
In the facts of the case, the writ petitions are
disposed of directing the State of Kerala and the Controller of
Rationing to take steps to forthwith order door delivery of ration
kerosene to the Fair Price Shops in the manner the door
delivery is being implemented in Kollam District or in any other
manner the said respondents may deem fit. A decision in this
regard applicable to the entire State shall be taken within a
period of three months. Any coercive proceedings against the
petitioners in the matter of non lifting of kerosene due to the
transportation issue shall stand stayed till the Government takes
a decision in this regard.
Sd/-
N. NAGARESH, JUDGE
aks/11.08.2025
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W.P.(C) Nos.23732 & 23819 of 2025
APPENDIX OF WP(C) 23732/2025
PETITIONER'S EXHIBITS
Exhibit P1 TRUE COPY OF THE LICENSE NO.
EKM/069/2022/NPR DATED 30/3/2023 GRANTED
IN FAVOUR OF THE 2ND PETITIONER FOR THE
CONDUCT OF THE FAIR PRICE SHOP
Exhibit P2 TRUE COPY OF GO (ORDINARY) NO.
193/2025/F&CS DATED 17/06/2025 OF THE
1ST RESPONDENT
Exhibit P3 TRUE COPY OF THE APPLICATION DATED
26/8/2023 OF THE 2ND PETITIONER BEFORE
THE REGIONAL TRANSPORT OFFICE, ERNAKULAM
ALONG WITH ITS TYPED COPY
Exhibit P4 TRUE COPY OF THE REPLY
H1/E578061/2023/E, DATED 21/9/2023
RECEIVED BY THE 2ND PETITIONER FROM THE
OFFICE OF THE REGIONAL TRANSPORT OFFICE,
ERNAKULAM
Exhibit P5 TRUE COPY OF THE REPRESENTATION DATED
4/10/2023 OF THE 1ST PETITIONER BEFORE
THE DISTRICT SUPPLY OFFICER, ERNAKULAM
Exhibit P6 TRUE COPY OF THE REPRESENTATION DATED
6/5/2025 OF THE 1ST PETITIONER SUBMITTED
BEFORE THE RESPONDENTS
Exhibit P7 TRUE COPY OF THE REPRESENTATION DATED
7/5/2025 OF THE RATION DEALERS CO-
ORDINATION STATE COMMITTEE SUBMITTED
BEFORE THE RESPONDENTS
Exhibit P8 TRUE COPY OF THE REPRESENTATION DATED
18/6/2025 OF THE RATION DEALERS CO-
ORDINATION STATE COMMITTEE BEFORE THE
RESPONDENTS
Exhibit P9 TRUE COPY OF THE ORDER CCS/7656/2022-A2
DATED 15/07/2023 OF 1ST RESPONDENT
Exhibit P10 TRUE COPY OF THE NOTICE TSOKCH/462/2025-
KA DATED 2/7/2025 ISSUED BY TALUK SUPPLY
OFFICER (IN CHARGE), KOCHI ON AUTHORIZED
WHOLESALE DEPOT NO.1735119-KOCHI TALUK
ALONG WITH ITS TYPED COPY
Exhibit P11 TRUE COPY OF THE PROCEEDINGS DATED
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W.P.(C) Nos.23732 & 23819 of 2025
23/07/2025 OF DISTRICT COLLECTOR, KOLLAM
COMMUNICATED BY THE DISTRICT SUPPLY
OFFICER, KOLLAM, VIDE DSOKLM/627/2025-
CS7 DATED 25/07/2025
Exhibit P12 TRUE COPY OF THE NOTICE
NO.TSOKYR/251/2025-CS3 DATED 28/7/2025
OF THE TALUK SUPPLY OFFICER, KANAYANNUR
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APPENDIX OF WP(C) 23819/2025
PETITIONER'S EXHIBITS
Exhibit P1 THE TRUE COPY OF THE LICENCE NO.
EKM/016/2022/KYR DATED 23-12-2022 FOR
OPERATION AS A FAIR PRICE SHOP OWNER
Exhibit P2 THE TRUE COPY OF THE ORDER OF
APPOINTMENT NO. CS2-16138/06 DATED 18-6-
2007 AS AN AUTHORISED RETAIL DISTRIBUTOR
Exhibit P3 THE TRUE COPY OF THE G.O. NO.
193/2025/F&CS DATED 17.06.2025
Exhibit P4 TRUE COPY OF THE COMMUNICATION ISSUED BY
2ND RESPONDENT DATED 27.06.2025
Exhibit P5 THE SHOW CAUSE NOTICE DATED 28/07/2025
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